part5-149
- 5.20.1.1
Collections Role in ATAT - Exhibit 5.20.1-1
ATAT Collection Case Control Assignment
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Collection’s role in ATAT will be extremely important in ensuring
future compliance of tax laws. Early intervention in examination investigations
will also help ensure collectibility issues are addressed up front, and enforcement
taken as early as is allowable by law on this segment of taxpayers. Judicial
enforcement may be required on many of these types of abusive tax schemes
cases. -
Refer to IRM 4.32, Abusive Tax Avoidance Transactions
(ATAT), as the main section where all ATAT issues from other functions
are addressed and cross-referenced. The collection section on IRM 4.32, Collection, (Role of Collection as a Support Function) will
be cross-referenced to IRM 5.20, Abusive Tax Avoidance Transactions
(ATAT), and all its subheadings. IRM 20.1.6, Preparer/Promoter
Penalties, also includes the abusive tax avoidance transactions issues
as it relates to promoter and preparer penalties.
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Almost all identified balance due Abusive Tax Avoidance Transactions
cases identified in Collection will be as a direct result of an examination
function examination. Organizational priorities have dictated that the examination
function target, classify, and examine these abusive promotion cases. As a
result, increased volumes of abusive promotion cases will continue to come
into the revenue officer inventories. -
Examiners will be consulting collection employees during their examinations
and have been alerted to ask for assistance from ATAT trained designated revenue
officers when needed.
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The exchange of information between revenue officers and examiners working
on ATAT cases can save time and provide both functions with valuable leads.
Examiners and revenue officers must work together to coordinate their efforts
and ensure the ultimate collection of any penalty or participant tax liabilities
that result from promoter investigations. Collection support in the form of
early intervention is integral to bringing these taxpayers back into compliance. -
If a promoter, participant, or any related entity has an outstanding
liability, revenue officers may be able to obtain current financial information
useful to examiners. The information obtained by revenue officers may include:-
Bank information including loan application files
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DMV information
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Financial statement information
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The recent location of a promoter
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Prior Integrated Collection System (ICS) history documentation
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Real property search results
Conversely, when a deficiency is assessed and/or a penalty
is asserted by Exam, the case can be assigned to Collection once the taxpayer
fails to make full payment. An early exchange of information will assist the
Revenue Officer with preparing a collection strategy and expedite the collection
process. -
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Revenue officers can use information about related entities and potential
alter egos or nominees to establish sources of funds that could be available
during the collection process. Examiners and revenue officers should review
case files together prior to closure in order to convey copies of important
documents and information to the Revenue Officer that might not otherwise
be available after closure. -
Examiners must coordinate with Collection to ensure that Collection
has sufficient information to uphold and collect the penalties assessed as
a result of an IRC 6700 investigation.
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The ATAT Collection Coordinator is the central contact point for examiners
and Examination group managers regarding all early intervention case assignments
between Collection and Examination. Examiners conducting promoter or participant
investigations or needing Collection assistance on any ATAT case should contact
the local ATAT Collection Coordinator through their Group Manager. A listing
of ATAT Collection Coordinators can be located on the SB/SE website at
http://abusiveshelter.web.irs.gov/AbusivePromotions/CollectionGroups.htm. -
The ATAT Collection Coordinator will assign the case, based on established
work plan priorities, to a revenue officer. If a revenue officer is expected
to charge over 30 minutes of time working with an examiner, a Compliance Initiative
Program (CIP) will be opened. A CIP authorizes revenue officers to work cooperatively
with examiners, maintain a history of actions taken and charge time to the
case. -
Any other ATAT cases identified through other means should be routed
to the Area Collection Coordinator for appropriate routing and assignment.
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The assignment of a case control number is no longer required on ATAT
cases with the exception of whipsaw assessments. In the case of whipsaw assessments,
the key and all related whipsaw entities must be assigned the same control
number. Assigning the same control number to these cases will assist in ensuring
that the whipsaw assessments are only paid once. -
Case control numbers should be assigned based on the blocking series
that is designated for each Area by Headquarters. See IRM Exhibit 5.20.1-1
for a complete list of control numbers assigned to each Area. -
The case control number should be entered into the Entity manager’s
flag field #1. Entries in manager’s flag field #2 are necessary to define
the following types of cases: Exam Promoter Lead from the LDC – enter “PROM”
, Collection Promoter Lead from the LDC – enter “COLL”
, and Offshore Credit Card Project – enter ”
OCCP”
. Entries such as ATAT – Abusive Tax Avoidance Transaction, OVCI
– Offshore Voluntary Compliance Initiative, or LCCI – Last Chance
Compliance Initiative that duplicate the ICS sub code are not necessary.
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The Collection Coordinator is responsible for ensuring that ATAT cases
are controlled and transitioned properly from Examination to Collection. Their
responsibilities include:-
Providing a central Collection point of contact for Area employees for
the Collection/Examination ATAT issues/audits. -
Coordinating Collection support of Examination audits involving ATAT.
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Assigning Compliance Area case control numbers.
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Ensuring appropriate assignment and routing of cases from Examination
to Collection. This may include monitoring cases after the closing of an examination
and prior to assessment, and securing and delivering appropriate documents
from examination files to Collection groups on cases identified for field
assignment. -
Resource person for Collection employees working ATAT investigations.
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Collection/Examination liaison to foster cooperative efforts between work
groups. -
Elevating ATAT issues to the appropriate SB/SE Analysts.
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Providing a central Collection point of contact for appropriate assignment
and routing of cases from Appeals to Collection. -
Liaison with Appeals.
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All ATAT and Promoter cases should be assigned a risk score in order
to assist in the assignment of priority cases to revenue officers. Collection
will prioritize and work ATAT cases in the following order:-
ATAT Promoters – Any taxpayer involved in an abusive tax avoidance
transaction promotion who has also promoted this promotion to other individuals,
especially for monetary gain, will be the highest priority cases for revenue
officers. These cases should receive the same priority as cases with risk
level H 100. -
Compliance Impact – High Profile ATAT Cases – Any case involving
promoter associates, promoter trustees, other close involvement with the promoter
and any cases over $1 million are considered of the highest priority work
for revenue officers. Defaulted, unagreed cases, which will also be whipsawed
assessments (multiple assessments on different trusts set up by the taxpayer
to move and hide assets/funds) will be included in this category. These cases
should receive the same priority as cases with risk level H 100. -
Large Dollar ATAT Cases – Large dollar cases, for ATAT purposes,
are those with unpaid balance of assessments in excess of $100,000 (IMF cases).
These cases should receive the same priority as cases with risk level H 103. -
Lower dollar ATAT cases – Those with unpaid balance of assessments less
than $100,000 (IMF case) that are not whipsawed. These cases should receive
the same priority as cases with risk level H 201. -
All Other ATAT cases as identified by the Area ATAT Territory Manager
or Collection Coordinator.
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Upon agreement that whipsaw cases should involve Collection participation,
either prior to assessment or immediately upon assessment, the Collection
Coordinator should assign a control number.
Whipsaw cases (assessments made on the primary account as well as the
related trust entities) must be assigned the same ATAT Case Control number.
This will assist in linking related cases.
Each SB/SE Compliance Area has been assigned a string of control numbers.
The table below indicates that the first position is an alpha character followed
by consecutive three-digit numbers beginning with 001 and continuing through
999. If an Area exhausts the assigned Alpha/numeric string assigned below,
they should contact their ATAT SB/SE analyst for additional control numbers.
The Collection Coordinator may find it effective to establish a log to record
the assignment of each control number.
| SB/SE Field Collection Area | ATAT Case Control Assignment |
|---|---|
| North Atlantic (ME; VT; NH; MA; RI; CT) | A001, A002, A003, ….A999 |
| North Atlantic (NY) | B001, B002, B003, ….B999 |
| Central (PA; NJ) | C001, C002, C003, ….C999 |
| South Atlantic (DE; MD; VA; NC; SC; DC) | D001, D002, D003, ….D999 |
| South Atlantic (FL) | E001, E002, E003, ….E999 |
| Central (MI; OH; KY; WV) | F001, F002, F003, ….F999 |
| Midwest (WI; IL; IN) | G001, G002, G003, ….G999 |
| Gulf States (AR; LA: MS; TN; AL; GA) | H001, H002, H003, ….H999 |
| Midwest (ND; MN; SD; NE; IA; KS; MO) | I001, I002, I003, ….I999 |
| Gulf States (TX; OK) | J001, J002, J003, ….J999 |
| Western (MT; WY; CO; NM; AZ; UT; NV) | K001, K002, K003, ….K999 |
| Western (WA; OR; ID; HI; AK) | L001, L002, L003, ….L999 |
| California (Bay Area, CA) | M001, M002, M003, ….M999 |
| California (Southern, CA) | N001, N002, N003, ….N999 |
| International | O001, O002, O003, ….O999 |
| California (Los Angeles Metro area, CA) | P001, P002, P003, ….P999 |
